Rising Sentiment Should Boost the Economy

Consumers, businesses and investors are likely to feel increasingly good about the U.S. in the coming year, writes Wells Fargo Advisors' top macro strategist.

Consumers are finally realizing that the U.S. economy is getting better. The improvement is slow and confidence is still below its highs in the late 1990s when economic conditions were quite good. Nevertheless, it is encouraging to see confidence has recovered to its highest level in almost six years. The outlook for the economy remains favorable because increasing consumer sentiment is likely to support continued growth in consumer spending.

Last week, the University of Michigan reported that its widely-watched consumer...